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Richmond Fed's Current Activity up 9 to 12
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Manufacturing activity in the central Atlantic region advanced somewhat faster in January after firming somewhat in December, according to the Richmond Fed's latest survey. All broad indicators — shipments, new orders and employment — landed in positive territory, with manufacturers noting their first increase in worker numbers since September 2011. Most other indicators were also positive, including capacity utilization. Only backlogs inched lower. Delivery times were virtually unchanged, while finished goods inventories grew at a slower rate.
Looking forward, assessments of business prospects for the next six months were more optimistic in January. Contacts at more firms anticipated that shipments, new orders, backlogs, capacity utilization, and capital expenditures would grow more quickly during the next six months.
Survey assessments of current prices revealed that raw materials prices grew at a somewhat quicker rate in January than a month ago, while finished goods prices grew at a slightly slower pace. Over the next six months, respondents expected growth in raw materials prices to rise at a somewhat quicker pace than they had anticipated last month, while they expected price growth in finished goods to grow at a slower rate.
In January, the seasonally adjusted composite index of manufacturing activity — our broadest measure of manufacturing — increased nine points to 12 from December's reading of 3. Among the index's components, shipments gained fourteen points to 17 and new orders doubled, picking up seven points to finish at 14. The jobs index picked up eight points to 4.
Most other indicators also suggested stronger activity. The capacity utilization indicator advanced eight points to finish at 8, while the index for backlogs of orders gave up five points to end at −4. Additionally, the delivery times index was almost unchanged at 3, while our gauges for inventories were mixed in January. The finished goods inventories index lost fourteen points to 9, while the raw materials inventory index gained five points to end at 18.
Posted: January 24, 2012 Tuesday 12:44 PM